Ensuring Liquid and Well-Functioning Funding Markets

MAS enhanced the banking system’s access to Singapore dollar (SGD) and the United States dollar (USD) funding

3 September 2020

Given the heightened uncertainty amid the COVID-19 pandemic, MAS established the MAS SGD Term Facility to provide banks and finance companies an additional channel to borrow SGD funds at longer tenors and with a wider range of collateral. MAS also expanded the range of collateral accepted at the MAS USD Facility to be in line with those accepted at the SGD Term Facility. In addition, domestic systemically important banks would also be able to pledge residential property loans as collateral at the MAS SGD Term Facility. To facilitate this, MAS raised the asset encumbrance limit imposed on locally incorporated banks under the Banking Act from 4% to 10%.

MAS extended the MAS USD Facility, on the back of the extensions of the US$60 billion Swap Facility with the US Federal Reserve 

17 June 2021  

The US$60 billion swap facility with the US Federal Reserve was established in March 2020. The swap facility was extended three times and will be in operation through 31 December 2021. Correspondingly, the MAS USD Facility funded by the swap facility was extended till 31 December 2021. Since its launch, the MAS USD Facility has provided about US$25 billion to banks (as of 31 March 2021), for use in Singapore and the region. The extension of the MAS USD Facility would continue to promote stability in USD funding conditions and support improvements in market confidence.